Huge Demand for Properties in Madrid from Rich Venezuelan Exiles

Many Venezuelans who are desperate to get out of their country and escape the economic crisis in their country have been excited by Spain’s Golden Visa program, which has been in place since 2013.

Any non-EU investor who buys properties worth 500,000 EUR is given all the necessary residency permits to stay in Spain, with the hope of getting the Spanish citizenship a few years later. A lot of wealthy Venezuelans have jumped at the opportunity to get out of their home country by applying for the Spanish Golden Visa.

In fact, 10,000 Venezuelans are reported to have shifted to Madrid this year alone. The reason for this is obvious. There are serious economic problems in Venezuela.

Because of the failed socialist policies of the late Hugo Chavez, which have been continued by the present leader Nicolas Maduro, inflation in Venezuela has soared to over 1100%. The economy has completely collapsed, there are widespread food shortages, most businesses are facing massive losses and over 35 percent of the population is on the brink of starvation.

Normally, most wealthy Venezuelans would move to the United States. Miami has a strong Venezuelan community. However, this is not possible any longer as President Donald Trump has imposed severe restrictions on any immigration to the US. So Madrid in Spain looks like the best alternative.

Many wealthy Venezuelans are looking to buy property in Madrid, Spain online in 2017. As Rangel Lattuf of Grupo SIEspana explains, “Venezuelans are getting to grips with the idea that even if you want to move to Miami, like most Venezuelans do -- it’s going to cost you more and it may not be possible after all. In Spain, you can buy a house and become a resident and after two years you can apply to become a citizen.”

Many Venezuelan businesses have relocated to Spain. Grupo Sambil, a Caracas based company has been investing heavily in Madrid. Alfredo Cohen, the owner of the company explains, “The country is going through a political and economic crisis, so diversifying our product, which has been very successful back home -- in fact we are still
headquartered in Venezuela -- is a good idea. We don’t just do shopping centres, we’re also a construction company and we have the cash to invest if we spot a good opportunity here in Madrid.”

Venezuelans say that they are attracted by the fact the culture in Spain is the same as that in Venezuela. Both nations speak the same language and have close historical ties that stretch for hundreds of years.

Alvaro Gonzalez de la Hoz of Petrus Grupo Inmobiliario, a top real estate company in Madrid adds, “The worse things get in Venezuela, the more they buy in Madrid. They feel safe here, they like the quality of life, they speak the language -- and they’re taking money out of Venezuela.”